1. Abstract of Retail Services and Wholesale Services

2. BCD Department Store Trademark for Goods Fruit: BCD Department store Books: BCD Department store Clothes: BCD Department store Expensive Trademark for Services Wholesale Services : BCD Department store Commodity (Designated goods) Inexpensive 1. Trademark for Retail Services and Wholesale Services Commodity

3. BCD BCD Department Store WAREHOU SE “Services” at shops Stocking of various kinds of commodities Displaying various kinds of commodities Explaining various kinds of commodities to customers Trademarks used at shops - Shop signs at the entrance or on an outside wall, etc. - Employee uniforms - Shopping carts - Shopping bags (Paper bags, plastic bags) 2. Actual Situation

4. Expensive Loss of trademark 3. Before the Law Was Revised (Until March 31, 2007) “Services” are considered as “accompanying” (or “dependent”) The cost of “Services” are included in the cost of Commodities Trademark rights must be obtained for each commodity Using the trademark is not considered the same as using for the commodity The trademark right for a commodity may be invalidated by a “Non-Use Trial” But BCD Department Store ≠ BCD

5. 4. After the Law is Revised (From April 1,2007) The “services” are considered as “independent” services. Trademark rights can be obtained for retail services or wholesale services Using the trademark is considered the same as using for the “service” The trademark right can not be invalidated by “Non-Use Trial”

6. BCD Department StoreBCD Department storeBCD Department Store …you are infringing on the “BCD” trademark, and any use thereof is strictly prohibited by Trademark Law! We are very sorry! We don’t realize that we were unlawfully using a registered trademark. BCD …you are not infringing because you are the proprietor of the trademark right! If you are using the “BCD” registered trademark for retail or wholesale goods, and are not the proprietor of that trademark… BCD And if you are the proprietor of the registered trademark “BCD” for retail or wholesale services … We have been using the “BCD” trademark for a long time… 5. The Damage of Not Having a Trademark for “Services”

7. Treated as “filed on the same day” The general terms of registration are examined A Consultation order is issued by the Commisioner of Japanese Patent Office Assertation of usage Evidence of usage Both are registered as proprietors Refused We are using the trademark! We are using the trademark! We are not using a trademark! 6. Interim Measures (April 1, 2007 to June 30, 2007) Please Discuss!!

8. BCD Department Store March 31, 2007 7. Continuous Usage Right Based on Prior Usage

9. 8. Retail Services or Integrated retail Services BCD Department Store Apparel (Clothing, etc. ・・・ ) 10 ％～ 70 ％ of sales Food and Beverages 10 ％～ 70 ％ of sales General Merchandise 10 ％～ 70 ％ of sales ＯＫＯＫ BCD Department Store ＮＯＮＯ Retail services for apparel Retail services for food and beverages Retail services for general merchandise Apparel (Clothing, etc. ･･･） Food and Beverage General Merchandise The conditions of registration of integrated retail services: Percentage of xxx for integrated retail services: